CCE Vs. HARYANA CONDUCTORS PVT. LTD.

JUDGEMENT

(1.) THIS is the appeal by the Revenue against order -in -appeal No. 306 -307/SSS/RTK/2007 dated 30/05/07 passed by CCE (Appeals), Gurgaon by which penalty on the respondent imposed by the Assistant Commissioner under Section 11AC was reduced to 25% of the amount of penalty.

(2.) THE facts giving rise to this appeal are in brief as under:

(3.) I have carefully considered the submissions from both the sides and perused the records. There is no doubt about the fact that the entire duty on the cenvated input found short had been paid and only a few days after the shortage was pointed out and as such no interest is payable. I also find that in view of these circumstances, the Assistant Commissioner while issuing the adjudication order should have extended the option to pay 25% penalty under 1st proviso to Section 11AC within 30 days from the date of issue of the adjudication order. But no option was extended and penalty equal to amount of duty demand confirmed was imposed under Section 11AC. In view of these circumstances, I hold that the ratio of Hon'ble Delhi High Court judgment in the case of K.P. Pouches (P) Ltd. v. UOI (supra) and the judgment of Hon'ble Punjab & Haryana High Court in the case of CCE, Rohtak v. J.R. Fabrics (P) Ltd. (supra) would be applicable. In view of this, I do not find any infirmity in the impugned order. The Revenue's appeal is dismissed.